Clinton, MD asked in Business Formation and Business Law for Maryland

Q: Are you required to open a business bank account?

If you're a sole proprietor and also file a DBA in Maryland.

1 Lawyer Answer
Mark Oakley
Mark Oakley
  • Rockville, MD
  • Licensed in Maryland

A: No, but it’s a lot cleaner and easier for accounting and tax purposes if you do, since you need to separate out business expenses and income from your personal expenses. It’s a much better business practice as well since there may come a time when you’d like to obtain business financing, credit, or take on investors, etc., and they will want to review your financials and books. You don’t want all you’re personal expenditures mixed up with your business revenues and expenses. Smarter still is organizing as an LLC or sub chapter S Corp for personal liability protection.

1 user found this answer helpful

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